Cabral Gold Announces Final Closing of Over- Subscribed Private Placement
Cabral Gold Announces Final Closing of Over-
Subscribed Private Placement
Vancouver, British Columbia--(Newsfile Corp. - April 29, 2024) -
Cabral Gold Inc. (TSXV: CBR) (OTC
Pink: CBGZF) ("Cabral" or the "Company")
is pleased to announce the final closing of its previously
announced non-brokered private placement (the "
Private Placement
").
The Private Placement was
oversubscribed and the Company has issued a total of 14,126,250 units (the "
Units
") at a price of $0.16
per unit for gross proceeds of $2,260,200 pursuant to the Private Placement.
The closing of the final
tranche of the Private Placement, consisted of 2,457,500 Units for gross proceeds of $393,200.
Each Unit consists of one common share in the capital of the Company (a "
Common Share
") and one
half of one common share purchase warrant (each whole common share purchase warrant, a
"
Warrant
").
Each Warrant is exercisable for two years following closing of each individual tranche of the
Private Placement and will entitle the holder to purchase one Common Share at an exercise price of
$0.24.
The Company has incurred finder's fees totaling $37,008 in connection with the Private Placement.
The Company intends to use the net proceeds from the Private Placement for advancing the ongoing
Pre-feasibility study on the gold-in-oxide resources at the Cuiú Cuiú gold district and for general working
capital purposes.
All securities issued in connection with the Private Placement are subject to a statutory hold period of
four months, in accordance with applicable securities legislation and the policies of the TSX Venture
Exchange.
Two directors of the Company participated in the Private Placement, acquiring an aggregate of 250,000
Units for a total of $40,000. Their participation constitutes a "related party transaction" under Multilateral
Instrument 61-101 -
Protection of Minority Security Holders in Special Transactions
("
MI 61-101
"). The
Company will be relying on exemptions from the formal valuation requirements contained in section
5.5(b) of MI 61-101 and the minority shareholder approval requirements contained in section 5.7(1) (a) of
MI 61-101, on the basis that the Company is not listed on specified markets and the fair market value of
the securities issued to the related parties do not exceed 25% of the Company's market capitalization,
as determined in accordance with MI 61-101. The Company did not file a material change report 21
days before closing of the Offering as the details of the insider participation were not known at that time.
About Cabral Gold Inc.
The Company is a junior resource company engaged in the identification, exploration and development
of mineral properties, with a primary focus on gold properties located in Brazil.
The Company has a
100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in
northern Brazil. Two main gold deposits have so far been defined at the Cuiú Cuiú project which contains
National Instrument 43-101 compliant Indicated resources of 21.6Mt @ 0.87 g/t gold (604,000 oz) and
Inferred resources of 19.8Mt @ 0.84 g/t gold (534,500 oz).
The Tapajós Gold Province is the site of the largest gold rush in Brazil's history producing an estimated
30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the largest area of placer
workings in the Tapajós and produced an estimated 2Moz of placer gold historically.
FOR FURTHER INFORMATION PLEASE CONTACT:
"Alan Carter"
President and Chief Executive Officer
Cabral Gold Inc.
Tel: 604.676.5660
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Guillermo Hughes, MAusIMM and FAIG., a consultant to the Company as well as a Qualified Person
as defined by National Instrument 43-101, supervised the preparation of the technical information in
this news release.
Forward-looking Statements
This news release contains certain forward-looking information and forward-looking statements within
the meaning of applicable securities legislation (collectively "forward-looking statements").
The use of
the words "will", "expected" and similar expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those anticipated in such forward-looking statements.
Such forward-looking statements should not be unduly relied upon.
This news release contains forward-
looking statements and assumptions pertaining to the following:
use of proceeds.
Actual use of
proceeds may vary from the information provided herein depending on external circumstances such as
market conditions and other relevant business objectives and opportunities that may arise.
The
Company believes the expectations reflected in those forward-looking statements are reasonable, but
no assurance can be given that these expectations will prove to be correct.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A
VIOLATION OF U.S. SECURITIES LAWS
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